The International Monetary Fund (IMF) may have accidentally delivered its biggest advertisement for Bitcoin yet as it argues for negative interest rates.
Bitcoin Proponents Thank IMF… Again
Retweeting a blog post from February this year, the financial organization reiterated its faith in central banks increasing negative interest rates – essentially taxes on using money.
“In a cashless world, there would be no lower bound on interest rates. A central bank could reduce the policy rate from, say, 2 percent to minus 4 percent to counter a severe recession,” the blog post read.
The interest rate cut would transmit to bank deposits, loans, and bonds. Without cash, depositors would have to pay the negative interest rate to keep their money with the bank, making consumption and investment more attractive. This would jolt lending, boost demand, and stimulate the economy.
This time round, the IMF’s advocacy caught the attention of the Bitcoin industry.
In demonizing storing cash for free, negative interest rate proponents…